NASDAQ$MBIN

Merchants Bancorp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Merchants Bancorp reported record-setting performance driven by growth in mortgage warehouse loans and increased gain on sale of loans.

Merchants Bancorp reported a strong fourth quarter with net income increasing by 99% compared to the same period last year, driven by growth in net interest income and gain on sale of loans. The company's investments in technology, talent, and synergistic businesses, along with conservative underwriting, allowed it to capitalize on historically low interest rates.

  • Net income for Q4 2020 was $59.8 million, or $1.95 diluted earnings per share.
  • Total assets reached $9.6 billion at the end of 2020, a 51% increase compared to 2019.
  • Net interest income increased by 84% compared to Q4 2019, driven by higher loan growth and a higher net interest margin.
  • The company reported an industry-leading efficiency ratio of 24.5% for the fourth quarter.

Headline financials

Total Revenue

$112M

Previous: $60.3M+85.6%
EPS (adj)

$1.30

Previous: $0.61+113.1%
Return on average assets

2.6%

Previous: 1.8%+42.0%
Efficiency ratio

24.5%

Previous: 31.2%-21.5%
Capital Expenditures

$2.19M

Previous: $1.71M+28.2%
Free Cash Flow

$331M

Previous: $406M-18.5%
Net Income

$59.8M

Previous: $30.1M+98.7%
Cash & Equivalents

$180M

Previous: $318M-43.4%
Total Assets

$9.6B

Previous: $6.4B+50.0%

Revenue & EPS history

Merchants Bank · Revenue · Quarterly

$112M

Q4 2020+85.6%vs Q4 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

We are entering 2021 in a strong position to deliver financial solutions within our unique and successful business model. We remain optimistic about our future because of the hard work and dedication of our employees.

Tailwinds

  • Strong position to deliver financial solutions
  • Unique and successful business model
  • Optimistic about the future
  • Hard work and dedication of employees
  • Significant borrowing capacity

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+0.6%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+3.5%

Avg return

30 days after

56%

23 / 41 earnings

Positive

+15.8%

Q4 2025

Best reaction

-16.1%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%-7.5%-5.0%
Q4 2025+15.8%+20.3%+21.0%
Q3 2025+1.4%+0.9%+9.2%
Q1 2025-8.6%-6.8%-2.5%
Q4 2024+6.5%+2.7%+2.4%
Q3 2024-16.1%-15.5%-3.8%
Q2 2024-15.8%-22.4%-13.9%
Q1 2024+3.3%+17.5%+1.4%
Q4 2023+5.4%-5.4%-4.6%
Q3 2023+11.0%+13.2%+27.6%
Q2 2023+2.4%+5.5%-3.4%
Q1 2023-1.9%-2.8%-1.0%
Q4 2022+11.0%+18.8%+17.6%
Q3 2022-0.1%-0.5%+4.7%
Q2 2022+4.6%+8.1%+9.1%
Q1 2022-4.2%-3.1%+1.5%
Q4 2021+4.9%+7.7%-0.9%
Q3 2021+4.3%+9.1%+8.5%
Q2 2021-2.5%-9.7%-7.3%
Q1 2021+5.3%+7.9%+7.7%
Q4 2020-0.7%+7.8%+13.3%
Q3 2020+0.2%+3.2%+26.6%
Q2 2020+10.0%+6.9%+17.7%
Q1 2020+6.1%+14.9%+26.0%
Q4 2019+9.8%+11.5%+0.5%
Q3 2019-0.7%+8.1%+9.2%
Q2 2019+6.4%+6.5%-4.9%
Q1 2019-9.7%-7.6%-27.5%
Q4 2018-7.6%-6.3%-3.1%
Q3 2018+3.8%+0.2%+6.4%
Q2 2018-8.6%-2.9%-3.9%
Q1 2017+5.6%+7.9%+20.4%
Q1 2018+6.5%+9.8%+24.5%
Q4 2015-5.2%-4.1%-8.0%
Q4 2016-5.2%-4.1%-8.0%
Q1 2016-5.2%-4.1%-8.0%
Q2 2016-5.2%-4.1%-8.0%
Q2 2017-5.2%-4.1%-8.0%
Q4 2017-1.6%-1.4%+10.5%
Q3 2017+2.2%+6.8%+0.3%
Q3 2016+2.2%+6.8%+0.3%

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